Ramaco Resources (NASDAQ:METC) and L&L Energy (OTCMKTS:LLEN) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Ramaco Resources and L&L Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ramaco Resources 9.20% 15.27% 10.81%
L&L Energy N/A N/A N/A

Institutional & Insider Ownership

84.5% of Ramaco Resources shares are owned by institutional investors. Comparatively, 0.1% of L&L Energy shares are owned by institutional investors. 85.2% of Ramaco Resources shares are owned by insiders. Comparatively, 18.8% of L&L Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Ramaco Resources and L&L Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ramaco Resources $61.04 million 3.50 -$15.41 million ($0.41) -13.00
L&L Energy N/A N/A N/A N/A N/A

L&L Energy has lower revenue, but higher earnings than Ramaco Resources.

Risk & Volatility

Ramaco Resources has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, L&L Energy has a beta of 2.88, meaning that its stock price is 188% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ramaco Resources and L&L Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ramaco Resources 0 0 3 0 3.00
L&L Energy 0 0 0 0 N/A

Ramaco Resources currently has a consensus target price of $10.00, suggesting a potential upside of 87.62%. Given Ramaco Resources’ higher possible upside, equities research analysts plainly believe Ramaco Resources is more favorable than L&L Energy.

Summary

Ramaco Resources beats L&L Energy on 8 of the 9 factors compared between the two stocks.

Ramaco Resources Company Profile

Ramaco Resources, Inc. produces and sells metallurgical coal in the United States. The company's development portfolio includes the Elk Creek project consisting of approximately 18,728 acres of controlled mineral and 24 seams located in southern West Virginia; and the Berwind coal property comprising approximately 31,200 acres of controlled mineral and an area of Squire Jim seam coal deposits, which is situated on the border of West Virginia and Virginia. Its development portfolio also comprises Knox Creek property consisting of approximately 61,343 acres of controlled mineral that is located in Virginia; and RAM Mine property comprising approximately 1,567 acres of controlled mineral, which is situated in southwestern Pennsylvania. The company was founded in 2015 and is headquartered in Lexington, Kentucky.

L&L Energy Company Profile

L&L Energy, Inc., through its subsidiaries, engages in production, processing, and sale of coal in the People's Republic of China. The company operates in three segments: Coal Mining, Coal Wholesaling, and Coking Coal. It has the right to extract coal from five mines, including the DaPuAn mine and the SuTsong mine in Yunnan Province; and the WeiShe mine, LaShu mine, and LuoZhou mine in Guizhou Province in China. The company also operates two coal washing plants and three coal wholesale and distribution network in the southwest region of China. It serves customers in steel and electrical/utility industries. L&L Energy, Inc. was founded in 1995 and is headquartered in Seattle, Washington.

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